Out Fox The $treet

As I posted on WhoTrades yesterday, the tweets of MGT Capital's (MGT) new CEO John McAfee assured the market that the soaring stock wasn't a pump and dump. The odd part is that the tweets from the legendary CEO only played into the stock pump. The stock traded up to $5.58 today for an incredible surge from only $0.25 in April. Despite his past success with McAfee in the cybersecurity space, he is now 70 years old and technically running for president as well. His D-Vasive company that focuses on anti-spy software doesn't appear to have much in sales. The deal involved MGT paying D-Vasive 23.8 million shares and $300,000 in stock. The deal was for 47% of the company making the stock valuation over $275 million at the peak today. A big key is that McAfee was willing to accept less than 50% of the MGT stock for his company for a value of below $10 million at the time of the deal. Even at the close, MGT has no business trading for a valuation of around $132 million. ...

With all the discussion heating up regarding the legalizing of online gambling, most investors have probably missed that skill based gambling is already legal in most states. Betting on fantasy sports and other skilled based games is legal in nearly all states and has a preferential carve-out on the Federal level under the Unlawful Internet Gambling Enforcement Act of 2006. According to Forbes contributor Marc Edelman, daily fantasy sports are insulated from federal liability if it meets three conditions as follows: The value of the prizes is not determined by the number of participants. All winning outcomes reflect the relative knowledge and skill of participants. No winning outcome is based on the outcome of the score of games or the single performance of an individual athlete in a single, real-world event. Read the full article at Seeking Alpha.  Disclosure: No positions mentioned. Please review the disclaimer page for more details.